|
Hong Kong companies, including Cheung Kong Holdings, plan to invest in China Construction Bank's initial public offering, the largest in the world so far this year.
Cheung Kong group, owned by billionaire Li Ka-shing and a conglomerate with investments covering property, infrastructure and telecommunications, will buy shares of the bank, the third-largest lender on the Chinese mainland.
"We do have plans to invest in the stock and the investment will be made by the group, not Chairman Li himself, but no more details can be released at the moment," said an official with the company's corporate affairs department via telephone yesterday.
CCB, the first among China mainland's four biggest state-owned banks to sell shares overseas, plans to raise between US$6.1 billion and US$7.7 billion by selling 26.5 billion shares in Hong Kong later this month.
Other companies including New World Development and Henderson Land, both real estate heavyweights in Hong Kong, also plan to place orders for CCB shares during, said sources familiar with the matter.
These companies are likely to invest about US$100 million to US$200 million each in the bank. CCB started a roadshow to institutional investors in Hong Kong on Wednesday, said a source who asked not to be identified.
"As the first of the big four banks to go public, China Construction Bank will be favored by fund managers and they will have it in their portfolio," said Ivan Chung, managing director of Xinhua Fareast China Ratings.
The Wall Street Journal reported on Thursday that around US$4 billion of institutional orders were placed on Wednesday, the first day of book building, after a tentative price range of HK$1.80 (23 US cents) to HK$2.25 a share was confirmed.
The bank will announce its offering to the public sometime next week.
(Shanghai Daily October 8, 2005)
|
